What is the multi-stage DDM applied price of a stock which is expected to begin...
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What is the multi-stage DDM applied price of a stock which is expected to begin paying a $3 dividend 6 years from now. The firm is expected to grow dividends by 15% per year for the next four years after that, followed by a constant growth rate of 4% thereafter forever. Assume that investors require a rate of return of 16% for this firms common shares.
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| $25.75 |
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| $16.36 |
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| $11.23 |
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| $18.75 |
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